Beyond GDP in Africa: Day 1 Summary
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Presentation given at the 'Beyond-GDP in Africa: Innovative Ideas for a Regional Dashboard' workshop, Centre for the study of Governance Innovation, University of Pretoria. www.governanceinnovation.org
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- 1. Beyond GDP in Africa: Day 1 Summary Pretoria University 29 October 2014
- 2. Robert Costanza: Context: The 21st Century World • We live in a ‘full world’ beset by ‘wicked problems’ • overshooting some planetary boundaries • climate change • resource depletion • pollution • inequality of wealth and income • social dysfunctions 2
- 3. Problems with GDP as an indicator of social progress • GDP says nothing about the distribution of income and wealth (inequality) • GDP measures only market-traded goods and services, not well-being or happiness, which are (arguably) the ultimate goals for human development • GDP is not measuring sustainable income (not counting depletion of capital stocks) • reinforcing the resource curse in Africa 3
- 4. 4 Building the future we desire requires that we measure what we want. A prosperous, high quality of life that is equitably shared and sustainable.
- 5. Enrico Giovannini: Beyond GDP and the SDGs • OECD stats division moving beyond GDP • much more interest initially from developing countries to measure equitable and sustainable well-being, but they have resource & capacity constraints • some countries and regions are beginning to embrace this agenda • BGDP agenda is similar to MDG agenda and we should seize this opportunity 5
- 6. Alternative Indicators Attempts to improve or complement GDP 6 International National Local Water Accounts Green Economy Index Standard Environmental- Economic Accounts Gross National Happiness Natural capital accounts Decent Work Genuine Progress Indicator GCRO Barometer Monitoring decent work
- 7. Lessons • With limited financial resources & capacity, you can’t measure everything all the time • For every indicator of progress, there is an unequal and opposite indicator • A quick way to boost GDP in Africa is to spend more money on surveys of informal sector economic activity 7
- 8. Green Economy Index • weighting of indicators is a major challenge • sensitivity of results to weights & indicators • should be based on stakeholder engagement • only really useful for rankings • but how important are interntl comparisons? • policy should be based on context-specific measures of well-being 8
- 9. Environmental-Economic Accounting • standardised international methodology • can use same data from ecosystem assessment in ecosystem accounting • need much more research on SA’s ecosystems; regular (annual?) updates • SEEA provides a powerful framework but some way to go on implementation 9
- 10. Genuine Progress Indicator • Mind the Gap! • attempt to close the historical divergence between GDP and GPI 10
- 11. 11 Thank you.